The Indian government has announced a series of measures to attract foreign investment, including changes in rules regarding investments by foreign individuals in Indian stocks and offering more investment options to foreign portfolio investors (FPIs).
The move aims to strengthen India's position as a leading global investment destination and deepen the capital market, the Union finance ministry said in a statement.
The reforms include easing the regulatory framework for FPI investment in government securities, removing restrictions on short-term investment limits, concentration limits, and security-wise limits.
The government has also allowed tax exemptions to foreign investors to ensure stable systematic inflow of durable, patient foreign capital and long-term investors such as pension funds, insurance companies, and sovereign wealth funds.
The exemption will be applicable from April 1, 2026, to any interest or capital gains arising to FPIs on or after the date in respect of investments in G-Secs.
The measures are expected to expand the investor base for Indian equities and government securities and encourage wider participation from global investors seeking exposure to one of the world's fastest-growing major economies.
